A 1 Furniture sold 2 Original cost of the furniture 3 Accumulated depreciation on the furniture 4 Fair market value of replacement furniture 5 Sales price of the furniture sold 6 Gain or loss recognized 7 Pickup truck exchanged for a new pickup truck 8 Carrying value of old truck 9 Fair value of old truck 10 Fair value of new truck 11 Cash paid to dealer 12 Gain or loss recognized 13 Equipment destroyed by fire 14 Original cost of equipment 15 Accumulated depreciation 16 Insurance proceeds 17 Cost to replace equipment 18 Gain or loss recognized B $13,000 $11,500 $18,000 $1,800 $18,000 $19,000 $25,000 $6,000 $17,500 $3,500 $15,000 $23,000

A 1 Furniture sold 2 Original cost of the furniture 3 Accumulated depreciation on the furniture 4 Fair market value of replacement furniture 5 Sales price of the furniture sold 6 Gain or loss recognized 7 Pickup truck exchanged for a new pickup truck 8 Carrying value of old truck 9 Fair value of old truck 10 Fair value of new truck 11 Cash paid to dealer 12 Gain or loss recognized 13 Equipment destroyed by fire 14 Original cost of equipment 15 Accumulated depreciation 16 Insurance proceeds 17 Cost to replace equipment 18 Gain or loss recognized B $13,000 $11,500 $18,000 $1,800 $18,000 $19,000 $25,000 $6,000 $17,500 $3,500 $15,000 $23,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 42E

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